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BP sells some North Sea assets to Serica

Nov 21, 2017
2 min read
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UK's oil giant BP has agreed to sell a package of its interests in the Bruce field in the North Sea to Serica Energy in a deal worth about £300 million.

The Bruce field was discovered in 1974 and came into production in 1993, with Keith tied back to Bruce in 2000. Rhum, a high-pressure, high-temperature satellite field located 40 kilometres to the north of Bruce, was brought into production in 2005.

BP will sell assets that comprise the Bruce, Keith and Rhum fields, three bridge-linked platforms and associated subsea infrastructure. BP expects to receive payments of around £300 million from Serica, with most set to be received over the next four years.

Bernard Looney of BP said: "This is an example of BP's upstream strategy in action - refreshing our portfolio and focusing our activity on assets which will add most value over the long-term.

"We remain committed to the North Sea and continue to invest. We expect our production there to double to around 200,000 barrels equivalent a day by 2020 through new projects like Quad 204 and Clair Ridge.

The sale and transfer of operatorship should happen by the 3rd quarter of 2018. The Bruce assets are expected to transition to Serica as a fully operational entity with around 110 staff.

Serica chairman Tony Craven Walker commented: “This transaction will establish Serica as a leading British independent oil company with the scale, balance sheet and operating capability to prosper in the North Sea’s rapidly changing upstream oil and gas industry.”